Hey there! I’d love some input on this deal I’m working on. I think I’m close to where I should be but it looks like they’re doing something funny by covering the first month’s payment and dealer fees with the $11k incentive, resulting in a cap cost reduction of $8,775 instead of the full $11k.
I pointed this out and let them know I’d like to roll all the fees into the monthly payment and apply the full $11k incentive and they told me they don’t control how the system outputs the numbers and can’t roll the fees into the monthly payment. Who’s the crazy one here?
The calculator tells me I should be closer to $722/mo, and I wonder if the difference is in how they’re handling the rebate.
I’d love to find a bigger discount. What type of discount do you think is available on these given the dwindling inventory across the country? The best I’ve found from the five offers I’ve received is 5%.
Not enough info to calculate the payment. The residual value is missing and so is the sales tax rate as well as your state. Also, I have no idea whether any amounts are capitalized. I also would need an itemization of the 1466.50 upfront fees which likely includes taxes, title/reg/license fees, doc fee.
Regarding the 8775.95 cap reduction… of the 11000 rebate, they allocated 8775.95 toward the cap reduction so that balance of 2224.05 exactly covers all the upfront fees…
1466.50 + 757.55 = 2224.05 … note: 1466.50 does not include the 1st. payment
This allocation is very common especially when there are large rebates involved and is likely the most cost-effective way to structure this lease. FYI- there are no online calculators capable of calculating this allocation. I have developed formulas that perform these calculations in case you’re interested. However, I can’t confirm them due to missing info.
Bottom line: zero drive-off followed by 35 monthly payments of 757.55 each.
BTW, the desking software is capable of capping all fees so that your DAS = 0. The dealer is either ignorant and wants to avoid discussion or is lying.
Your question reveals my blind spot. I was looking at them using the rebate to cover fees as if it were the same as a cap cost reduction out of my pocket. Do you typically pay these fees upfront?
This is exactly what I did. Every offer I received was in response to a direct offer I made to each of the dealers asking for 7-8% off MSRP. But with three GT-Lines available within 250 miles I’m not surprised they didn’t bite.
Youre asking between having the rebate cover it directly or having the fee capitalized, making the capitalized cost higher, and then having the rebate be a larger cap cost reduction. Its not like one of these scenarios prevents you from paying the fees. The only difference is that a non-taxed fee paid directly doesnt have sales tax applied to that amount of the payment upfront. Once you capitalize it, the whole cap cost reduction amount is generally taxed, so in essence, you’re asking the dealer to just charge you more money.
Where I live there would be small differences in tax paid between the two methods (YMMV), but otherwise there’s no difference in the total cost of the lease.
When 36 x payment A = 35 x payment B, do you really care either way?
5% is still much better than the sub-3% deal you quoted. I guess the extra $45 a month savings is on a vehicle you don’t really want. You might try offering $700 a month and let them figure out how to get there and not worry about how they do it.
Where are you located? I know of a dealership near me that has a GT line with relaxation package in ocean blue that has been sitting in the lot since January. If my wife wasn’t 100% against the blue, I would have made a pretty aggressive offer to them.
